Absolutely they do, I've had several people tell me they no longer invest in cryptocurrency due to a bad experience, which usually revolved around them being scammed in the most obvious waysuch as being scammed by a fake admin or handing over their private keys to somebody else.
I think it's always going to be one of the main barriers for cryptocurrency adoption, since the tabloids and newspapers love posting articles about how an old woman was scammed out of her life savings investing in Bitcoin or something similar.
Nothing we can do about it really.
We can't do anything about it but for those who are here long enough, we know how to tackle this situation.
Because we know that bitcoin is not a scam and only those people that used it for scam purposes are making the reputation of bitcoin bad.
But once they educate themselves and learn more about its true nature, they will understand that bitcoin or crypto has a lot to offer.
But sadly, we can't force those people to educate themselves. They need to learn it in their own way.